Federal Bank is expected to deliver further improvement in operational performance led by improving loan book growth and improving assets liability mix. Advances grew by 5.3% QoQ to Rs 850bn in 3QFY18, as SME, Wholesale and Retail (including Agri) book grew by 13.3%, 4.4% and 6.85% QoQ respectively.
We expect the Bank’s earnings to witness 33% CAGR through FY17-20E and reiterate our BUY recommendation on the stock with an Target Price of Rs 150 based on 2.3x FY19E Adjusted book value.
BHARTIARTL (LTP: 424) BUY
For today’s trade, long position can be initiated at 422-417 for target of Rs 458 with a strict stop loss of Rs 403.
FEDERALBNK (LTP: 95) BUY
For today’s trade, long position can be initiated at Rs 93-94 for target of Rs 97 with a strict stop loss of Rs 92. Traders are advised to avoid early morning whipsaw.
TECHM (LTP: 590) SELL
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For today’s trade, short position can be initiated at Rs 596-600 for target of Rs 582 with a strict stop loss of Rs 605. Traders are advised to avoid early morning whipsaw.
About Reliance Securities
Reliance Securities, the broking arm of Reliance Capital, is one of the India’s leading retail broking houses, providing customers with access to equities, derivatives, currency, IPOs, mutual funds, bonds, and corporate FDs amongst others. The large array of financial offerings helps customers fulfilling their investment objectives on one platform. Focus on timely & error-free execution represents its core strength. Their best in class research offerings, high degree of compliance with stock exchange regulations, ethical business standards, & strong risk management capabilities; Reliance Securities positions itself amongst strong & innovative brands in the financial services space.
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